You have been given two pieces of advice that will do nothing to solve your problem. Please post the brand and model of your servo, I will not assume you have a digital as that is actually unlikely. 27mhz radios function perfectly well, yes digital is better but the 27mhz is not the problem.
You need to do a couple simple tests to see if it's the servo or the reciever problem.
We know that channel 2 works with the esc so I would suggest plugging the servo into channel 2 and test it. Yes you will use the trigger to turn the wheels but we are just testing. If the servo works in channel 2 then you have a bad channel 1 in the reciever. Simple. If the servo does not work in channel 2 then either the servo is bad or incompatible.
To double check I would plug the esc into channel 1, if it works then the servo is definitely the problem. If the esc does not work in channel 1 then you verified that the receiver has a bad channel 1.